"Giorgio Armani, one of the leading fashion and luxury goods groups in the world, is set to open its first Emporio Armani store and Emporio Armani Caffe in Hungary's capital city.The units are to be situated on Budapest's Andrássy road (No. 9), where Armani will be the second luxury goods vendor behind Louis Vuitton to set up shop.
Opening is scheduled for the fourth quarter of 2008, but the company's international press department told Portfolio.hu they had no further information to share with the public about the project just yet.
The Armani Group has also recently announced its intention to open a unique collection of luxury hotels and resorts in the world's most important cities and destinations.
2007 results
Last week, the Armani Group announced consolidated revenues of EUR 1.6 billion for 2007, an 8% year-on-year growth and EBITDA of EUR 354.9 m, up 18% yr/yr and 22% of consolidated turnover.
The group increased its EBIT by 17% yr/yr to EUR 289 m, and its wholesale revenues went up 15% to EUR 2.4 bn.
At the end of last year, the group's net cash was once again positive and stood at EUR 373 m, and over the course of the year it carried out investments in the value of EUR 95 m.
Growth has been substantial throughout all geographic areas, reaching (at current exchange rates) 24% in Greater China, 19% in Europe (excluding Italy), 7% in North America, 13% in Italy, 4% in Japan and 18% in the rest of the world.
Growth has also been significant for each of the Group's lifestyle brands. At current exchange rates it was 47% at Armani Junior, 25% at A/X Armani Exchange, 20% at Emporio Armani, 13% at Giorgio Armani, 8% at Armani Collezioni and 5% at Armani Jeans +5%.
“Although in 2008 there is a more uncertain economic climate I anticipate another year of growth supported by the +7% increase in our wholesale orders (9% at constant exchange rates) for the Autumn/Winter 2008 season," Giorgio Armani, President and CEO of Giorgio Armani S.p.A. said in a statement.
“In the year ahead we will continue to pursue our ambitious worldwide retail network expansion programme," he added.
During 2008 the group plans to add over 50 new stores to its network around the world, both in emerging markets, including Armani's first presence in India, and in existing more mature markets “where opportunities still exist for expansion".
The company had capital investments of EUR 95 m in 2007, with the aim to develop its retail network through the opening of 49 new stores. Today the company's retail network, including both those directly owned and in franchising, consists of 471 stores.
The Group has also continued to invest in its manufacturing capacity to improve efficiencies and production quality.
The Emporio Armani brand, the Group's younger, fashion-driven collection, achieved wholesale revenues of EUR 647 m, a 20% increase in annual terms.
The Armani Group is one of the leading fashion and luxury goods groups in the world today with 5,000 direct employees and 13 factories. It designs, manufactures, distributes and retails fashion and lifestyle products including apparel, accessories, eyewear, watches, jewellery, home furnishings, fragrances and cosmetics under a range of brand names.
The Groups exclusive retail network currently comprises 73 Giorgio Armani boutiques, 12 Armani Collezioni stores, 140 Emporio Armani stores, 128 A/X Armani Exchange stores, 18 AJ Armani Jeans stores, 7 Armani Junior stores, 1 Giorgio Armani Accessori, 1 Emporio Armani Accessori store and 33 Armani Casa stores in 46 countries."
Source: Portfolio Online Financial Journal
17.04.2008